US
Dollar chased its highest level on Rupiah
In
this world,majority each country has its own currency,one of those is US$. US$ is the U.S.A.currency.As a
currency the dollar has a vital role.The Dollar is mainly used as form of payment
either in USA or in International Trade.
In
currency exchange or foreign exchange,a currency might experience either
appreciation or depreciation.Appreciation is an increase in the value of a
currency as measured by the amount of foreign currency it can buy.And
Deppreciation is contra of appreciation or a deacrease in value of a
currency.Both appreciation and depreciation of a currency are determined
basically by the demand-supply law.Example , i choose two currencies comprise
of USD and IDR.When i am willing to buy a goods,example a telescope in US i
have to pay by USD but i live in Indonesia and i dont have a USD so i will
exchange my currencies (IDR) into USD.As i exchange my IDR into USD of course
the demand of USD increase and as that happen USD become appreciated and IDR become
deppreciated.
As
we’ve read a news recently on a
magazine,newsletter,tabloid,and websites,dollar appreciated toward IDR by the highest level on Rp14.200 per one
dollar.the increase was so strikingly high.Why this happens??is there any
causality of this bad phenomenon??The Answer is absolutely available.
US Increase its interest rate,America
have just raised its interest rate to become
0.25-0.5% from 0-0.25%.This means when someone borrow some money in or from US
the interest that accrued become higher.This regulation is basically to
regulate the money flow in America and this regulation could be translated as
America is still prudent on their economy so it prohibit the access of having a
borrow from bank by raising interest rate. Not only does Interest rate work for
borrower but also for lender.The lender will gain more interest by investing on US obligation because the US
have raised its interest rate.From this lucrative effort investors primarily
foreign investors are getting more and more interrested in US Obligation or Bonds.When they eager to buy it they have
to exchange their currencies into USD so the demand of dollar increase more and
more.
Dividen Shares Season, in
Indonesia dividen usually shared by many corporation in march-may. the amount of dividen which The Investors gain is determined by
percentage of their shares.the more percentage they have the more dividen they
gain,but remember not every company share dividend every year.It is decided
from General Meetings of Sharesholders.Mostly
of Investors who planted their capital in Indonesia is Foreign Investor.thus,if
they gain the dividen they will exchange their money which is rupiah into
another currencies.as that happen the
demand of rupiah decrease, the rupiah become depreciated, in this case rupiah
is becoming weaker toward US Dollar.
And
then “What is the effect of the rise of US Dollar towards Rupiah?”
Rising price of imported good.Importing
is an activity where domestic consumer buy foreign goods.otherwise,export is an
activity where domestic goods is demanded by foreign buyers or customers.
As
we import goods from outside of our country probably we pay with different
currencies.It could be US Dollar,Japan Yen,Chineese Yuan,Euro,and another
currencies.The payment is based on the contract,the concencus between trader
and buyer.In this case most of Indonesia-imported goods use US Dollar as balance of payment.When US Dollar apreciated
toward Rupiah of course we need to pay more than usual to import the goods that
we eager.
Less Foreign Capital,Investor
will look forward to choose more luctrative countries where they can invest. In
this case investor will be more interested in US investment instrument such as
government bonds.The rise of the US interest rates will give investor more gain
than before.So,investors will take their money from other countries and put an
investment in US.
Indeed,the
effect of the increasing interest rate dominantly gives massive negative effect,still there is a positive
effect of that.
Increasing value of Export.As
we know before export and import are contrary similar to two side of coin.in this
case i will give an example. Suppose a
good or service produced by a Indonesia exporter costs Rp13.980 per unit or
equal $1 per 10 June.On 7 July The USD appreciate to become Rp.14.000.precisely
on this day Some Indonesian-exporter export a service or a goods worth $1000.if
the indonesian exporter exchange the USD into Rupiah it will become
Rp14.000.000.Lets take a look if the indonesia exporter export on 10 june their
money will become Rp.13.980.000.There is additional Rp20.000
when the indonesia exporter export their goods or services on 7 July
rather than 10 june.We can conclude that the export value increase toward US
Dollar appreciation as the effect of the rise of US interest rate.
The
rise of US interest rate will give massive effect on economic sector.As we know
that many countries have an economic relation with US.Indonesia have to be
prepared by applying some economic policy during this phenomenon to keep
indonesia’s economy surrounding stay productive.
Komentar
Posting Komentar